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Finance Calculators

Perpetuity Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
Verified formula Private

Present value

₹10,00,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Perpetuity Calculator

The Perpetuity Calculator works out your present value in an instant. Enter annual payment and discount rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the annual payment.
  2. Enter the discount rate.
  3. Read off your present value — the calculator updates automatically, with no button to press.

Formula

The Perpetuity Calculator uses the formula:

Present value = Annual payment ÷ (Discount rate ÷ 100)

Worked example

For example, with annual payment of ₹50,000 and discount rate of 5%, the present value is ₹10,00,000.

Inputs used
Annual payment ₹50,000
Discount rate 5%
Results
Present value ₹10,00,000

Results are estimates for educational use, not professional advice.

Key terms explained

Present value
Today's worth of money you will receive in the future, discounted for the time value of money.

Frequently asked questions

It is a stream of equal payments that continues forever. Its present value is the payment divided by the discount rate.

PV = payment ÷ rate. A 50,000 annual payment at a 5% rate is worth 10,00,000 today.

Few truly last forever, but some bonds and preference shares behave like perpetuities, and the model approximates very long-lived cash flows.

A lower discount rate means future payments are worth more today, so the perpetuity's present value rises as rates fall.

Enter the annual payment. Enter the discount rate. Read off your present value — the calculator updates automatically, with no button to press.

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